Dogecoin (DOGE), soared amid huge capital rotations from Shiba Inu’s (SHIB) top meme coin competitor.
DOGE’s intraday high of $0.3449 was reached by an impressive 44% price rally. These gains were in stark contrast to the losses suffered by SHIB during the same time period. The so-called “Dogecoin Killer” fell almost 28% to record an intraday low of $0.000057. DOGE also printed its daily high in the same hour.
Daily price chart showing the inverse correlation between SHIB/USD and DOGE/USD Source: TradingView
DOGE’s market capitalization soared to more than $40 billion due to the sudden price rally. Shiba Inu had already achieved this feat hours earlier. The two cryptocurrencies are currently neck-and-neck, and are currently fighting for the ninth spot in terms of market cap.
Hours after Elon Musk posted a new tweet regarding the meme cryptocurrency, traders began flocking to Dogecoin markets.
Will you send me 2 doge if I send them?
Elon Musk (@elonmusk), October 27, 2021
Musk’s support tweets in the past prompted DOGE to rise by more than 1,500% within five months of 2021.
Short SHIB, long DOGE
Shiba Inu surged by an incredible amount heading into Q4, increasing by approximately 1,200% in Oct on the hope that it would be listed on Robinhood. Robinhood is a zero-fee trading platform based in the United States and will allow it to enter new decentralized finance and token sectors.
However, SHIB’s incredible bull run has made it highly valued based on key metrics such as the Relative Strength Index. It appears that spot and derivative traders are trying to protect and/or turn their profits.
Su Zhu is the co-founder, CEO, and chief information officer at fund management firm Three Arrows Capital. He noted that traders had earlier on Thursday shifted their short-term Shiba Inu perpetual Swap profits into the Dogecoin perpetual markets.
An ex-trader at Deutsche Bank suggested that DOGE could rally to $0.88 next if traders shift profits from SHIB and Dogecoin.
88e-6 $shib touch rotatooor now to.88 $doge pic.twitter.com/AqRd85rCSk
— Zhu Su (@zhusu) October 28, 2021
Doge rekts are estimated at $20.8 million
The price movements of Dogecoin also caught derivatives traders out as they lost $20.8 million in total liquidations over the past 24 hours. After DOGE’s price fell to $0.2179 per week on Wednesday, liquidations involving leveraged long bets amounted to $18.17million.
Contrary to this, bulls suffered more losses during the 12-hour period. Bulls took $8.9 million in bearish Dogecoin wagers and $5.22 million in bullish bets on the same token.
Total liquidations of DOGE across all exchanges Source: Bybt
Overall, however, Dogecoin traders were most short during the last 24 hours. FTX and OKEx users turned out to be extremely bullish with 58% and 77% respectively of their net positions skewed longer.
SHIB liquidations of $31.41 Million were also triggered by a sudden bearish turn in the Shiba Inu Market. This was the third-highest value among all cryptocurrencies within the last 24 hours.
Related: Shiba inu risk drops with SHIB’s October price rally at 574%.
PostyXBT, an independent analyst in the market, warned against excessive leverages in SHIB as well as DOGE markets.
He said that “Play spot is better than leverage” and added, “The volatility can quite easily wipe-out before a major move in the intended direction.”
com. You should do your research before making any investment or trading decision.
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